Companies' Fatal Failures to Warn of Product Dangers

The national press is reporting that after discovering a dozen serious infections in European hospitals resulting from the use of their medical scopes, Olympus Corp. notified European Hospitals of the risk.  At the same time, the company ordered its American executives NOT to warn American hospitals. Allegedly, thirty-five U.S. patients died after the European warnings and while American hospitals remained in the dark about the infection risk.

This same scenario seems to play out again and again - from exploding Ford Pintos to suddenly accelerating Toyotas to stalling Chevy Cobalts - and precious human lives were lost. Ultimately, the businesses suffered devastating fines, reputational damage and hyperinflated expense. Are executives always motivated to cash out on short term bonuses leaving subsequent executives to pick up the pieces?  Is there anything we can do in education America's future executives to break the pattern?

Conn. Senator Blumenthal touts his actions against GM's deceit:

Chinese Company Understands Profit, But Not Product Liability

The 5th Circuit Court of Appeals has upheld a District Court ruling that there is personal jurisdiction in US courts over a Chinese drywall manufacturer.  If you are not familiar with the legal, environmental and health issues related to Chinese drywall use in US buildings, click here for a summary, or watch the ABC video report below

Apparently the company never responded to this lawsuit and was subjected to a default judgment.  They claim that they did not understand the implications of the lawsuit.  As the judge noted, that's what American law firms are for.

Chinese Drywall Report from ABC:

SNL Consumer Probe

The images below are links to the famous Saturday Night Live "Consumer Probe" skit. Candace Bergen, playing a consumer reporter interviews Irwin Mainway (DanAkroyd) of Mainway Toys as he hawks his infamous band of dangerous products including, famously, the "Bag o' Glass."

Consumer Reporter: So, you don't feel that this product is dangerous?

Irwin Mainway: No! Look, we put a label on every bag that says, "Kid! Be careful - broken glass!" I mean, we sell a lot of products in the "Bag O'" line.. like Bag O' Glass, Bag O' Nails, Bag O' Bugs, Bag O' Vipers, Bag O' Sulfuric Acid. They're decent toys, you know what I mean?

It's a great way to introduce a product liability segment in  your Legal Environment class.

I can almost hear Emily Litella query: "What's all this fuss about "pro-duck liability?" "Oh, never mind."

Click on the image below to go to the video clip at Yahoo:



Click on the image below to go to the video clip at NBC.com:



Other videos for introducing product liability may be found at earlier posts: here and here.

Examples of Potential Product Liability Claims

Below are examples of people using a product that resulted in an injury.  The product below is one that has become well known for its propensity to cause injury- the 4-wheeled All Terrain Vehicle.

See related post here.

Guest Blogger- Paula O'Callaghan: Colbert Showcases "Hot Coffee"

Paula O'Callaghan from University of Maryland University College submits the following resource for use in class.

Here's a possible classroom resource - it's Susan Saladoff from the Colbert Report on the Liebeck case and tort reform. 

Saladoff is very good as you'd expect, but my favorite part is Colbert's point that if we believe in "jury of our peers" then why isn't McDonald's, being a corporate person, entitled to a jury composed of Burger King, Jack--in-the-Box, and it's corporate peers?! 

That's a good one, isn't it?  Incidentally, this was sent to me by a student after I had covered the Liebeck case in class.  Hope you find it useful.

Editor's note.  The documentary, "Hot Coffee" is available on DVD beginning today, Nov. 1, 2011.

To access the video clip, click on the image below:

Hot Coffee Case Reenacted

According to the YouTube description, the video below was prepared by students in Robert Emerson's BLAW class at the University of Florida. It is billed as a "re-enactment" of the McDonald's coffee case.  That term may be a bit generous, but it is certainly informative and thought provoking.  Kudos to Bob and his students for their creativity and contributions to legal studies education.

What Product Liability is All About

Why try to explain a hypothetical in words, when pictures (especially videos) can do it so much better?

Suppose you were to buy a treadmill and . . .



Or, suppose your little brother bought a pogo stick, and . . .



Or suppose you were riding an ATV, and . . .